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The number of companies whose credit ratings could be potentially downgraded has risen to a three-year high with the total being twice as high as a year ago and nearly double the average for the past 39 months, according to a new report.

Ratings agency Standard & Poor’s said there are 868 issuers poised for downgrades, the highest level in the three-year history of its downgrades report, with 82 issuers being added over the past month’s count.

Potential downgrades are defined as entities that have either a negative outlook or ratings on CreditWatch with negative implications.

Diane Vazza, head of global fixed-income research at S&P, said in a report: “We believe that the recent coordinated actions taken by governments across the globe to help stabilize the global economy should improve credit conditions and the economy overall, although it will take some time to materialize.”

More than half, 60%, of the potentially deteriorating issuers are from the US, which has the larger rated population, followed by Europe with 19% of the entities at risk for downgrades.

In terms of the absolute number of potential bond downgrades, the banking sector has the highest vulnerability to downgrades, with 107 issuers, closely followed by the media and entertainment sector with 100 issuers.

S&P also expects more credit deterioration in the automotive sector as sales are not expected to increase due to consumers’ inability to get auto loans, expected slow GDP growth over the next year, and an increased cost of capital.

Vazza said: “Standard & Poor’s expects that the auto manufacturers in the US may modify product lines, market focus, or even their status as independent entities as General Motors, Ford, and Chrysler face a propensity for additional credit deterioration in the upcoming weeks or months.”